12BS Chapter 5 Supply

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Draggable item		Corresponding Item
Supply		quantity of a good or service that a producer is willing and able to supply the market at a given price
The basic law of supply		as the selling price of a product rises, so businesses expand supply to the market
Subsidy		any form of government support—financial or otherwise—offered to producers
External Shock		a significant and often unexpected change outside a firm's control

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What does technological change encourage?

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